Cutting Edge Management and Marketing Ideas for Independent Operators, Salons and Spas. Use these ideas with your MIKAL software to move your business forward. Not using MIKAL yet? Call us for a free evaluation and walk through of what we can do for you! Welcome - Fred Dengler MIKAL Co-Founder and CEO
|Posted on October 8, 2018 at 3:35 PM||comments (0)|
Fall Money Making Ideas
Now that Summer is over?? and here is Cincinnati it will be SIXTY degrees on Wednesday! (great isn’t it?) it’s time to get back
down to business and get into the business of Fall sales and getting ready for the Holidays - Christmas is COMING! Now is the time to crank up the business of beauty.
Here are a couple of ideas to get you back down to business:
$ Go over these ideas. See what ideas generate the most excitement and appoint people and set dates for getting the projects going! Intorduce JITA the just in time appointment feature of MIKAL to fill the book. Get EMBA and you can go CRAZY booking all over town on your smart phones.
$ Clean the salon/spa from top to bottom. Paint a few walls and make a few small changes. Move some plants and displays. Decorate for the season!
$ Get dressed up. I don’t mean formal but every summer people get a little casual. It’s time to change our look and the change should be professional and upscale.
$ Get into the Fall colors. BROWN is the new black people! Make sure your make up is right for the season and coordinates with your new look! Get the staff together for a make up session and new fashion review.
$ Start your Referral Contest October 1st and end it on December 31st . Pick your prizes, do your precontest mailing/e-mail September 3rd, and get the signs up in the salon/spa. Call us for a free 11 page Referral Contest planning book. How would 50-100 new customers sound in the next 60-90 days?
Clean up the customer data base in the next 60 days. All of your regular customers will be in for the season. Run a list on your MIKAL system of all customers with Invalid addresses. The goal is to verify every customer’s address in the next 60 days. Check on the progress by running the Invalid Addresses report for all Last Visits in the last 7 days each week. The report should be blank every week if the front desk staff is cleaning up the list!
$ Get your Gift Cards on order NOW! Call RACO Card 866-940-4676 for a free sample kit. Order the Gift Card option is MIKAL’s SMS software and ask for our free information pack on promoting gift cards. Gift Cards will make a huge difference in your sales over the old gift certificates. NOTE: beware of companies giving you gift cards for use with their Internet or bank card systems. The costs for the processing of the card every time it is swiped become a huge expense and if a customer loses their card there is no way to cancel that card and charge the balance up on a new card. Call us at MIKAL to make an informed decision. Also revisit a switch in credit card processors. X-Charge our credit card processing partner has a $100 Gift Card waiting for you to switch!
$ Increase your Color service prices now just before the Holiday season. This will give you an additional boost to your income and the customers are coming in for that popular service during the season.
$ Sign up for the Autopilot Marketing system from MIKAL. The business can get hectic. Don’t let your marketing fall by the wayside. Put it on autopilot, and make sure you stay busy when Winter months roll around!
513-528-5100 email us at [email protected] Website: www.mikal.com
|Posted on October 2, 2018 at 10:40 AM||comments (0)|
For new salon and spa start up installations
Many times salon/spa owners concentrate on the salon design and esthetics and don’t think about the things that make a new salon/spa successful – the SYSTEM, people, and training!
Here is a time line for making sure the business is ready to do business and be successful!
Subject: Time line for business systems
Working back through the business side of getting your salon/spa up and going let’s look at these events:
12 month Grand Opening plan takes effect
Dates Days from opening Description
_____ D-Day! Salon/Spa opens
_____ 7 days before Opening announcement and specials for first 3 months mailed
_____ 14 days before Soft opening with comp services, relatives, vip services
_____ 17 days before All inspections and approvals done
_____ 17 days before Business system put into front desk when all finish work (dust) is gone
_____ 21 days before Mailing of 2nd pre-opening concept piece
_____ 21 days before Service systems training done business cards ordered
_____ 21 days before Retail in place and product knowledge classes started RX pads trained
_____ 21 days before Appointments are booked and gift cards are sold from a call forwarded location
_____ 30 days before Mailing of 1st pre-opening marketing piece
_____ 30 days before Develop customer survey and feedback system
_____ 30 days before Service menu and gift cards are delivered for marketing
_____ 30 days before 3 fold marketing concept pieces and postcard marketing pieces are delivered for mailings
_____ 40 days before Interview for service providers
_____ 45 days before Ads placed for service providers – Credit Card system in place
_____ 45 days before Salon policy manual and interview packet finished
_____ 45 days before Compensation system decided and compensation and goal setting put in place
_____ 45 days before Mikal pre-loads services and product lines
_____ 45 days before Marketing 3 fold, concept piece, service menu and gift card layouts done
– sent to printer’s
_____ 50 days before Select profile of perfect customers and get names for preload into MIKAL system
_____ 50 days before Product lines picked and opening orders considered – plan for vendor involvement
_____ 50 days before MIKAL computer system ordered and training date set
_____ 60 days before Salon Policy manual started and marketing literature design started
_____ 75 days before All design and salon systems on order
Call us with any questions 800-448-5420 and look for our Grand Opening and employee hiring articles on our web site www.mikal.com
TODAY ONLY - SALON/SPA POLICY MANUAL ON CD
SALON/SPA MARKETING MANUAL ON CD ORDER FROM OUR WEB STORE!
|Posted on September 28, 2018 at 3:35 PM||comments (1)|
GETTING THE MOST OUT OF YOUR FALL
Now that summer is over (depressing isn’t it?) it’s time to get back down to business and get into the business of fall. Now is the time to crank up the business of beauty. Here are a couple of ideas to get you and your staff back down to business:
$ Get a staff meeting together and go over these ideas. See what ideas generate the most excitement and appoint people and set dates for getting the projects going!
$ Clean the salon/spa from top to bottom. Paint a few walls and make a few small changes. Move some plants and displays. Decorate for the season!
$ Have everyone get dressed up. I don’t mean formal but every summer people get a little casual. It’s time to change our look and the change should be professional and upscale.
$ Get into the fall colors. Make sure your make up is right for the season and coordinates with your new look! Get the staff together for a make up session and new fashion review.
$ Start your Referral Contest October 10th and end it on December 20th. Pick your prizes, do your precontest mailing/e-mail now, and get the signs up in the salon/spa. Call us for a free 11 page Referral Contest planning book. How would 50-100 new customers sound in the next 60 days?
$ Get your front desk staff to commit to cleaning up the customer data base in the next 60 days. All of your regular customers will be in by the holidays. Run a list on your MIKAL system of all customers with Invalid addresses. The goal is to verify every customer’s address in the next 60 days. Check on the progress by running the Invalid Addresses report for all Last Visits in the last 7 days each week. The report should be blank every week if the front desk staff is cleaning up the list!
$ Get your Gift Cards on order NOW! Order the Gift Card option is MIKAL’s SMS software and ask for our free information pack on promoting gift cards. Gift Cards will make a huge difference in your holiday sales over the old gift certificates. NOTE: beware of companies giving you gift cards for use with their Internet or bank card systems. The costs for the processing of the card every time it is swiped become a huge expense and if a customer loses their card there is no way to cancel that card and charge the balance up on a new card. Call us at MIKAL to make an informed decision.
$ Draw up a list of outstanding bills (that you owe). Make sure you pay off these bills during the increased cash flow period in the fall and holidays before you take on any more debt. Don’t spend that gift card income before the redemptions start happening in January!
$ Increase your color service prices now just before the holiday season. This will give you an additional boost to your income and the customers are coming in for that popular service during the holiday season.
Now is the time to move into the Fall season with a new look, new ideas, and new promotions for increased sales and profits!
Please call us for additional information on the Referral Contest, Gift Cards, Pricing ideas, or your comments. Have a great fall season.
Fred Dengler MIKAL 513-528-5100 email us at [email protected] Website: www.mikal.com
|Posted on September 28, 2018 at 10:20 AM||comments (0)|
Product and Service Charges:
Many of our salons/spas are setting up product deductions or service charges to stop paying commissions on products used in a service and to help cover education, client marketing, and business building promotions. NOT to cover the overhead of running the salon/spa.
You could raise the commission percentages at each level if you set up a product charge and service charge. These charges will take the cost of professional products "off the top" and will create an education fund and savings plan for each operator.
Set up a product charge taking the cost of products off the top before paying commission (this needs to be done with a price increase). This should average about 10%. When an operator reaches service sales of $ 1000.00 per week, the salon/spa will absorb the product charge.
Set up a service charge of $ 1.00 per service. This charge will be split as follows:
25% of the dollar will go to the operators' education fund to be used for advanced education, shows, and travel expenses
25% of the dollar will go to marketing including the Birthday and Referral programs the salon uses
25% of the dollar will go to salon remodeling (the average salon increases sales 20% the year they remodel)
25% of the dollar will go to a profit sharing fund in which the employee will be fully vested after five years
The service charge will be absorbed by the salon every week that the operator reaches
$ 1500.00 per week in service sales. This rewards your top producing operators and makes the service charge a "right of passage" in the salon's culture.
Creating an Education Fund:
Taking the $ 1.00 per customer service charge and using .25 cents of that dollar in an education fund will generate a large personal education fund. An operator doing
$ 800.00 per week with an average ticket of $ 20.00 will create an education fund for themselves totaling $ 520.00 per year.
$ 520.00 per year could be used to attend the Midwest Beauty Show with ALL expenses paid. $ 520.00 could be combined with other operators' education funds to get a monthly in salon education class from top name talents. The potential is unlimited when a fund like this is put into place!
Creating an Employee Savings Plan:
Using the same example operator just a 25 cent per customer service charge will generate a savings plan, using simple interest, of over $ 3250.00 in FIVE years!
Compensation for your administrative and reception staff should be based on a base salary or hourly pay plan with bonus incentives for gift certificate sales, override commissions for increases in retail sales over present levels, and prebooked customers (booking future appointments with customers before they leave the salon).
NOTE: always enter the payroll info and run sample reports to make sure numbers are correct for payroll. MIKAL is responsible for the proper function of the software but not the calculations based on the information entered on the screens. That is your responsibility!
|Posted on September 25, 2018 at 10:20 AM||comments (0)|
Develop a ladder commission that only pays the extra percentage on the extra dollars earned (not retroactive to dollar one). Make the percentage increases 2% or 3% based on increasing sales about $ 150.00 per level. This gives the employee a continuing goal to aim for.
Guarantee $ 320.00 per week to all 40 hour employees
Percentage From $ To $
45% $ 500 $ 650
47% $ 651 $ 800
49% $ 801 $ 950 no product charge
51% $ 951 $ 1100 $ 1000 per week
53% $ 1101 $ 1250
55% $ 1251 $ 1400
57% $ 1401 $ 1550 no service charge
59% $ 1551 $ 1700 $ 1500 per week
61% $ 1701 $ 1950
63% $ 1951 $ 2100
65% $ 2101 $ 2250
Note: this is an example of ladder commission levels. You must work with your consultant to set levels that will meet your sales and profit criteria.
Set to hourly $9.50
No overtime till over 40 hours
No Item commissions
Yes to product deductions
Yes to service charges
Yes to assistant deductions
No credit card processing deduction
Ladder commission service
Straight commission retail
No retention bonus
No activity bonus
Using this pay structure an operator that brings in $ 1100.00 per week will earn:
Base guarantee up to $380 based on hours but remember NO overtime - put that in your employee manual
ALSO speaking of manuals if you do not have one call us for a FREE sample - just let us give you a demo of our SEVEN system!
Commissions 45% $ 67.50 on 500 to 650 in service sales
Commissions 47% $ 70.50 on 651 to 800 in service sales
Commissions 49% $ 73.50 on 801 to 950 in service sales
Commissions 51% $ 76.50 on 951 to 1100 in service sales
Total compensation $ 508.00 Average 46% of sales in compensation
|Posted on August 3, 2018 at 9:20 AM||comments (1)|
Camp Mikal VEGAS! RECAP
WOW – my batteries were recharged this past week. A great group of owners, managers and receptionists met for 3 days in VEGAS! and shared amazing ideas and strategies on Staffing, Marketing, Inventory Control and so much more.
Let me recap a few of the highlights:
Loyalty points system is in place and working for about half the group. After the meeting I’ll bet (haha) everyone gets on the Client Loyalty bandwagon. BIG ideas included using the points to automatically reward rebookings, referrals, and retail purchases, rolling ALL of those marketing strategies into a self running client rewards program. Activating the points to show on the workticket, at point of sale, and on the client receipt.
Idea: make it a policy a NOSHOW loses their points!
Idea: delete all points at the end of the slowest month of each year and everyone will come in that month to use their points!
JITA is only be used by 20% of the attendees. I’ll wager (haha) after the meeting everyone goes home and sets up JITA – Just In Time Appointments. JITA users reported the option that fills the holes in the book automatically added ONE more Appointment per day per employee to the book! WOW
Surveys were a big topic. Everyone signed on to Survey Monkey and looked at Mikal’s 5 sample surveys and learned how to attach them to the Mikal Autopilot new client, reminder, and other automatic emails to get TONS of immediate feedback from clients.
IDEA: share the survey results in staff meetings.
These ideas are only a few of the ones I jotted down during the CAMP. So DO NOT MISS the Winter Camp January 19-21, 2019. Call for the Early Birdie pricing and sign up NOW to save $70 and get the 5 easy squeezie payment option.
Thank you Campers – see you in January! Fred
513-528-5100 [email protected] www.mikal.com
|Posted on June 30, 2018 at 5:50 PM||comments (1)|
Today’s client is conservatively impulsive! That means they hold on to their money as long as they can but when the urge hits them to buy something - they do! (Remind you of anyone you know?) 30% of all clients make daily buying decisions based on "Groupon" type deals that are delivered to their in box. So you combat that with posts on Instagram and Facebook? How far down on the client's feed is your post if they don't look at it for an hour? Plus - At the same time in this summer economy clients slow down their visit frequency. Clients are stretching their appointments out and did you know if your average client puts off their visits by just one more week that can mean a 15% decrease in sales volume? OUCH!
JITA is the answer. Just In Time Appointment offers take advantage of the new buying trends and increase client visits and income.
JITA looks at your book each morning and checks for available times. Then JITA e-mails/texts clients who you want to offer these appointment opportunities to. Only each service provider’s clients that have opted in to JITA, only for the services you want to promote, only for the times of day you want to build, and only to clients that do not have a future appointment. JITA makes smart marketing offers!
So you need to get JITA going NOW! It only takes minutes to set up and runs every day automatically.
Call MIKAL and get your JITA going - NO revenue share, only sent to opt-in clients that don't have a future appointment! JITA is smart. Call us at 513-528-5100 and get BOOKED!
|Posted on June 28, 2018 at 7:45 PM||comments (0)|
Just imagine.................Having your MIKAL computer look at the cancellations and availability in your book and automatically sending appointment opportunities to your clients. The book fills up! Like MAGIC….Your JITA Genie has arrived!
Every night our system looks at the availability in your book and sends your clients an e-mail or text message inviting them to take advantage of the booking opportunity. We call it JITA the Just In Time Appointment system.
What is JITA worth to you? If JITA adds just one appointment per day for a service provider and the average service is $40 then JITA will increase sales $8000.00 per service provider per year. EIGHT THOUSAND DOLLARS! That is a 10 percent increase in sales for the average service provider. WOW. PLUS - when a client cancels how much time do you spend trying to fill that appointment? Do you call the wait list, try to rearrange the book? Save all that time and know that JITA is working for you every day.Cross market openings for Spa to Hair clients and Nail to Spa clients – automatically. JITA runs and the book fills up!
Wish you were booked SOLID?
You are in control
You decide who gets the JITA offers.
You decide to send only to clients who do not have a future appointment for that service.
You decide the limited number of offers for each employee.
You decide if JITA offers morning, afternoon, or evening booking opportunities.
You decide the service recommendations that match each employee's services.
You decide if there is a discount.
So unlike web based services that you have to pay for and revenue share the booking income with..... YOU ARE IN CHARGE.
You don't share your revenue. (Booking services charge a sign up fee and 15-18 percent of service booked)
You don't have to give discounts.
You don't create clients who WAIT for appointment offers.
You don't have staff mad at discounted offers being done during busy times.
You don't give your client list to someone else.
You MAKE MONEY.
Want to see JITA?
Call MIKAL and see how JITA will work for you. Call your MIKAL consultant today 513-528-5100 or email [email protected]
|Posted on June 25, 2018 at 3:55 PM||comments (0)|
MAXIMIZE Your Experience Marketing with MIKAL
Today’s consumer is more and more inclined to spend money on experiences than on items.
Experience purchases now win out for up to 40% of all consumers. It is over 60% of millennials would rather spend on experiences than items!
How do we take advantage of this trend?
We offer mini experiences. We set up the system and salon/spa to support the client WOW.
Packages with RICH descriptions. Services on our web site with details benefit laden descriptions. Scripts for our staff with the same…………..
What we don’t do: discount our packages and make them a commodity (think ITEM).
Sell gift cards for a cheaper rate – where is the experience part of the sale?
- Come up with a first time offer for the price check prospects for each area of the salon/spa. Tie to your Google offer, your Social media, and your referral program – is this working for you?
- Set up a pdf you can instantly e-mail for the client screen for the price inquiries – do you have?
- Set descriptions of all services for pop up that are packed with benefits – do you have set up?
- Train the staff especially the desk to use the benefits – script and role play!
- Use the Up-$ells to add on the experience services that WOW – are they being used?
- 4 Corner your front area to create the perfect client experience – see our diagram
- Time line to maximize every WOW opportunity during the client visit
- Review your USPs – do you work on these items every week?
- Use the EMBA to prebook at the chair/station – know why this is powerful?
- Video the finish or make up touchup on the client phone – do you do this now?
- Reward the client with instant rebates of the loyalty points on each visit – set up?
- Use the Thank you and New Client Thank you to follow up
- Use the Xris-Xross marketing to suggest NEW client experiences – set up and running?
- Publish the positive client experience comments – make sure it is available on Google!
- Promote the client experience options in your business – are these part of your USPs?
- Make sure you have a mini client experience option – know why this is critical?
- Put together packages, series and Events to keep the client experience fresh – important!
Now is the time to get on these programs and strategies. This trend for experiences in going to grow and if your salon/spa is not positioned for this big change in consumer buying you will miss out!
Come to MIKAL CAMP VEGAS for a full day detailing how to implement each of these ideas.
CEO – MIKAL 513-528-5100
|Posted on June 22, 2018 at 3:50 PM||comments (0)|
I want to share with you one of the biggest challenges of my career in the beauty business and how I recovered with the knowledge I have gained from you and your team and with our MIKAL software.
In March two employees moved several blocks down to a booth operation. One stylist was the top producer who had seven years with us. The other stylist had been with us for twenty years and was a reliable performer. They accounted for more than $200,000 of gross income.
Our contract was implemented in 2011 so both were excluded. I considered them to be loyal employees. It's the familiar story: both came to us with nothing and we supported them with supplemented education, benefits, and support in their personal lives.
After many tears, I dusted myself off, prayed to God to guide me, and on the way to work a few days after this bombshell I heard these strategies in my head:
I called all the "monthlies" which could be negotiated and did so.
We had recently cut back to bi-weekly payroll which was fortunate.
I used the inventory software to make tough calls on products leaving and staying.
I had a tasteful sign for "SALE" items and devoted about 12 linear vertical feet to that area in a visible area (beside shampoo area)
When distributors challenged me I remained steadfast.
I asked my top producer if she could give me two Saturdays a month. (She said "yes".
I discontinued the housekeeping position in the daytime and hired three new talent salaried stylists over a six month period to perform these duties.
I created retail specials for six week periods and produced framed signage at each station, easel signs, and foam board signs on restroom doors.We used an in-house graphic design software then emailed the product and specs to Kinkos and produced a professional looking sign for a very reasonable price.
I created bundles of all kinds seasonally.
We put small cards with retail promotions in every welcome bag for new clients.
Service Sales Marketing:
I used my MIKAL reporting and appointment book analysis to identify client types:
* 1. Clients who came every 8-10 weeks for haircuts only.
* 2. Clients who came every 4-6 weeks for haircuts.
* 3. Clients who came every 8-10 weeks for color and cut services.
* 4. Clients who came every 4-6 weeks for color and cut services.
* 5. Clients who came regularly for straightening or keratins.
The minute the stylists left on the last day, I began contacting clients by email (with the MIKAL system) or by telephone using the Mikal Last Visit date list if no email address was available and offered the following:
*1. Next haircut is on the house. NOTE: all these offers were for clients who had been to the stylists at least 3 times in the last 12 months. Easy to find and automatically generate with MIKAL. I did not want to give deals to salon or house clients or newer clients who where not yet loyal to the stylists that were exiting!
* 2. Next three cuts are on the house. For non responders to #1
* 3. Next color and cut are OTH.
*4. Next three (3) color and cut OTH. For non responders to #3
* 5. Next keratin or Japanese Str8r OTH.
I personally made calls for up to five hours a day. Over a six month period I continued to place emails and phone calls to clients who had not returned. I personally recommended a stylist(s) for each client.
ALL LOYAL SERVICE PROVIDERS WERE PAID IN FULL FOR SERVICES.
Clients who received one free color and cut received a promotional card to get the next cut and style free with their next color service with any stylist of their choice.
I bought a unique hole punch and used that to punch a business card to create a gift certificate to check against the transactions in the MIKAL sales history.
Departing stylists were frantically texting and calling loyal stylists about what clients were coming in.
Stylists wondered why the departing stylists had so much time to text and call.
Loyal stylists were increasingly busy and verbalized that the departing stylists had made a mistake. They expressed loyalty to our salon.
Clients verbalized to me that they had wanted a change for a time but were reluctant to "hurt" the long time stylist.
Within two months 2/3 of the contacted clients for the 20 year stylist visited. Within 2 months 50% of the contacted clients for the top producer visited.
Clients verbalized to me how much they appreciated my personal attention.
A few clients returned but did not want to take advantage of any offer.
In less than two years, our numbers returned to the March figures.
On March 1, not even two years later, the booth rental salon closed its doors.
We could not have survived this challenge without many years of education and input from your team. We could not have recovered so well without the MIKAL software.
I have learned many painful lessons and maybe they can help another owner.
My dear friend, Fred. One last tid-bit. I paid off the last piece of debt incurred after the walk out and another salon disaster last month. We had borrowed almost a million dollars across a bank, SBA, and SBA loan and paid it off in less than eight years while growing the SECOND location.
Thanks for being a key piece of our success over these decades.